Advanced says production halts hit Q1 profit

Advanced Petrochemical Co. has attributed the 13 percent drop in first quarter 2017 net profit to a decline in production, by 20,000-22,000 tons, due to the scheduled halt in operations, CNBC Arabia has reported, citing vice chairman, Abdullah Mogbil Al Garawi.

Advanced’s Q1 results were also impacted by a 51 percent rise year-on-year (YoY) in feedstock prices, that offset a 27 percent jump in product prices.

The utilization rate of the propylene and polypropylene plants reached 110 percent and 125 percent respectively, Al Garawi noted, adding that the petrochemical producer has the competitive advantage and enjoys strong productive efficiency.

Advanced reported a net profit of SAR 124.3 million for Q1 2017, a 13 percent year-on-year (YoY) drop, attributed to lower sales volumes, due to the scheduled halt in January 2017.

On a sequential basis, Q1 net profit declined 40.1 percent, driven by higher feedstock prices and lower sales volumes, data compiled by Argaam showed.